Mexico-Bound Canaryseed Under “Force Majeure” – for Aug. 26, 2010

The Canadian Special Crops Association has declared “force majeure” on exports of canaryseed bound for Mexico, extending deadlines indefinitely on crop deliveries to Mexican importers.

Canadian canaryseed deliveries to Mexico have been disrupted since late June when Mexico slapped a “hold and test” policy for canaryseed from Canada and indicated any shipments found to contain quarantine weed seeds would be rejected.

Mexico’s quarantine list includes wild buckwheat and stinkweed, two weeds commonly found in Canada.

The import requirements were changed without the standard 60-day advance notice of a change in import policy, the association said in a release Aug. 19. Furthermore, a long-term solution “has not yet been reached that would allow trade to proceed in a predictable manner.”

A declaration of force majeure, under the CSCA’s trade rules, allows extra time for the execution of contracts in the case of “extremely unusual events” for as long as those events are deemed to have lasted, the CSCA said.

Thus, the time for execution of contracts entered into on or before Aug. 19 for Canadian canaryseed headed for Mexico and traded under CSCA trade rules will be extended until the CSCA’s board determines that “the effect of this event no longer exists.”

A backlog of canaryseed rail cars at the U. S./Mexican border has been addressed, the CSCA noted. But it’s not clear how future shipments will be handled to the satisfaction of all parties involved.

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